Written Answers Nos. 51 - 70
51. Deputy Terence Flanagan asked the Minister for Finance if consideration has been given to tax breaks for landlords to encourage them to accept rent allowance tenants; and if he will make a statement on the matter. [16866/15]
View answerI am aware that the Department of the Environment and the PRTB have been examining the issue of the private rental market and looking at possible reforms for this sector. In 2014, the Private Residential Tenancies Board (PRTB) commissioned two research reports to explore the policy options required to ensure a sustainable private rented sector into the future. The main report, entitled 'Future of the Private Rented Sector', examines the economic, policy and taxation treatment of the rented sector.
The second report, entitled 'Rent Stability in the Private Rented Sector', looks at policy options to address the difficulties being experienced in segments of the private rented sector. This report includes an examination of rent regulation regimes in other countries and puts forward a series of policy options in relation to rent stability for consideration, such as:
- Increasing awareness among landlords and tenants of the PRTB and their rights and obligations under the Residential Tenancies Act 2004;
- Introducing tax incentives in relation to Housing Assistance Payment (HAP) and Rent Supplement tenancies;
- Introducing a rent certainty lease.
The Government is monitoring the rental market closely and the overriding objective in relation to rents is to achieve stability and sustainability in the market for the benefit of tenants, landlords and society as a whole. Housing policy is a matter for the Department of Environment, and my officials have been in contact with officials in that department and they are keeping the tax policy aspects under review. Any such tax proposals would be considered by the Government as part of the annual Budget and Finance Bill process.
52. Deputy Mary Lou McDonald asked the Minister for Finance if he will provide a list of the shareholders who benefitted from the Irish Bank Resolution Corporation 2012 Siteserv transaction, when €5 million was provided in dividends. [16870/15]
View answerNeither I nor officials in my Department hold a record of the list of shareholders who benefitted from the sale of Siteserv in 2012 other than the partial summary of the top 10 shareholders of Siteserv as at December 9, 2011, already released under Freedom of Information and available on the Department of Finance website.
However, I understand the Special Liquidator is coordinating acces to the share register, which is available to view at the offices of Computershare, who provided share registration services to Siteserv. I would suggest that the Deputy contact the Special Liquidator directly to access this information.
53. Deputy Thomas P. Broughan asked the Minister for Finance if he will report on whether additional mobile X-ray scanners are needed for the Revenue Commissioners; and if he will report the cost of providing each additional scanner. [16902/15]
View answerI am informed by the Revenue Commissioners that Revenue currently has three mobile scanner systems. Two of these are mobile x-ray container scanning systems that are based at Dublin Port and Rosslare Ferry Port respectively. Both of these scanners are available for deployment at other ports, and at other locations such as warehouses, as required, and Revenue uses them, on a risk assessment basis, at various locations throughout the country. The other mobile scanning system is a scanner van, a specialist vehicle incorporating an X-ray facility and radiation detection facilities. It is used for monitoring baggage and cargo at airports and ports for narcotics, cigarettes, radioactive materials and other contraband. It also allows Revenue officers to carry out control actions at other locations such as warehouses and courier depots.
The mobile scanner systems are complemented by static baggage/parcel scanners at all major ports, airports and postal depots. I am advised that four modern replacement x-ray scanners for baggage were purchased in the last year for use at Dublin Airport, Shannon Airport, Cork Airport and Rosslare Ferry Port.
The Revenue Commissioners are satisfied with their current scanning capabilities and consider that the container ports are adequately serviced by the two mobile X-ray container scanning systems and have no plans at present to acquire additional scanners.
54. Deputy Michael McGrath asked the Minister for Finance if he or any of the officials in his Department raised the question of a possible breach of state aid rules arising from a certain transaction involving the Irish Bank Resolution Corporation (details supplied) whereby an asset in the control of a body owned by the State may have been sold at less than market value; the action that was taken; and if he will make a statement on the matter. [16910/15]
View answerNeither I nor officials from my Department were involved in the transaction involving the company referred to in the question.
Following the transaction the Chairman provided direct assurances to me that the transaction had been run by the company in the best possible manner to acheive the best result for IBRC and consequently the State.
In light of the above, neither I nor officials from my Department raised concerns that the transaction involving the sale of the company referred to in the question may have breached state aid rules.
55. Deputy Michael McGrath asked the Minister for Finance if officials in his Department recommended in 2012 that an independent review be carried out into a certain transaction involving the Irish Bank Resolution Corporation (details supplied); the action he took on foot of any such advice; and if he will make a statement on the matter. [16912/15]
View answerAs contained in material previously released under Freedom of Information and available on the Department of Finance website ahead of a meeting with the Chairman and CEO of IBRC on 25 July 2012, which I also attended, there was a recommendation in a note prepared for myself and the senior officials attending the meeting that the Chairman of IBRC be asked to commission an independent review in relation to the sale of the company referred to in the question.
On 25 July 2012, I along with officials from my Department, met with IBRC's Chairman and CEO to discuss a number of concerns, which included concerns regarding this transaction which had emerged following engagement with IBRC management after the completion of the transaction.
During this meeting, I raised these concerns regarding the transaction with the Chairman. I want to be very clear. The Chairman provided me with strong assurances both regarding the specific aspects of the transaction with which we had concerns and that the overall transaction had been thoroughly assessed by the IBRC Board and that the Board of IBRC were satisfied that the transaction was managed in the best manner possible to achieve the best result for the State.
It should be noted that the IBRC Board had a fiduciary responsibility to the bank's stakeholders and so, in light of this legal responsibility, the Chairman and the Board would have considered and provided such assurances following serious and careful consideration.
It is also important to note that this transaction had completed at that stage and there was no legal possibility of reversing the transaction. In light of the strong assurances I received from the Chairman that this transaction had been properly considered by the IBRC Board, assurances which I accepted, an independent review into the transaction did not take place.
However, as is also evidenced in the information released under Freedom of Information, engagement continued between Department of Finance officials and senior management of IBRC to improve upon the working relationship with IBRC and to help protect against such concerns arising in the future, including the implementation of the revised relationship framework and the secondment of a senior Department of Finance official to IBRC as a senior executive to facilitate IBRC's ongoing deleveraging programme. The Department of Finance official remained in secondment with IBRC until the date of the IBRC liquidation in Feburary 2013.
56. Deputy Robert Troy asked the Minister for Finance the current strength of the customs personnel; the average number of checks carried out on a monthly basis; and the number of detections of use of illegal fuel. [16937/15]
View answerI am informed by the Revenue Commissioners that they are a fully integrated tax and customs administration and that it is not possible to disaggregate resources deployed exclusively at any given time on customs work. Revenue currently has approximately 2,000 staff engaged on activities that are dedicated to targeting and confronting non-compliance. These front-line activities include anti-smuggling and anti-evasion, investigation and prosecution, audit, assurance checks, anti-avoidance, returns compliance and debt collection.
The Revenue Commissioners' multi-annual budget 2015 to 2017 provides for an average annual whole time equivalent staff resource of 5,874. Revenue's overall staffing levels have reduced from a total of 6,581 full-time equivalents at the end of 2008 to the current level of 5,681. Notwithstanding this reduction, Revenue staff resources assigned to compliance activities have been maintained at around 2,000. I am advised by the Revenue Commissioners that they are committed to ensuring that, despite the staffing reductions, enforcement work, will continue to be resourced to the maximum extent possible.
I am advised also that the average monthly number of checks carried out during 2014 in connection with the suspected illegal use of marked fuel was over 2,800. The number of detections of the illegal use of marked fuel in that year was 1,148.
57. Deputy Brendan Griffin asked the Minister for Finance for his views on a matter (details supplied) regarding a tax credit; and if he will make a statement on the matter. [16945/15]
View answerI am advised by the Revenue Commissioners that the tax credits of the person concerned changed arising from a change in her personal circumstances when she was widowed in 2014. The reduced tax credits applied from 2015. The tax credits now available to the person concerned are correct based on the current information available to Revenue.
58. Deputy Martin Heydon asked the Minister for Finance if he will provide clarification of the revised tax credits and reason for additional tax charges for a person (details supplied) in County Kildare; if relief will be provided on these charges; and if he will make a statement on the matter. [16993/15]
View answerI have been advised by the Revenue Commissioners that in March 2015 it came to Revenue's attention that the person concerned was in receipt of married person's tax credits, although his personal status had changed in 2010, having been widowed. The overall tax liabilities of the person concerned were reviewed for earlier years having regard to his changed circumstances and this gave rise to an underpayment of tax for those years.
Following recent telephone contact with Revenue, the period for collection of the underpayment for the person concerned was extended from two years to four years.
59. Deputy Catherine Murphy asked the Minister for Finance if he will confirm that the primary adviser at Davy Corporate Finance (details supplied) with responsibility for the 2012 Siteserv sale, who was also responsible for managing the corporate finance relationship of an interested party at that time (details supplied), was subsequently hired by his Department to oversee the shareholder management unit, which had responsibility for departmental inquiries into the Siteserv transaction throughout the 2012/2013 period; the dates at which this person began employment in said role; if he considers there to be a major conflict of interest apparent in respect of same; and if he will make a statement on the matter. [16995/15]
View answerI can confirm that the person referred to in the question who was primary advisor at Davy Corporate Finance to Siteserv during its sales process in 2012 is now Head of the Shareholding Management Unit in my Department.
This person was recruited through competition by the National Treasury Management Agency. He is employed by the National Treasury Management Agency and is on secondment to the Department of Finance.
He began his current employment on 6th November 2013.
Prior to taking up his current employment, the person referred to in the question declared a conflict of interest existed on the Siteserv transaction which he advised on while in his previous employment. Given this conflict of interest, and in keeping with Department of Finance and NTMA policy, the person referred to in the question has not been involved in any way with any issues on the Siteserv transaction; this includes approving parliamentary questions, reviewing freedom of information requests and all internal discussions on this matter.
I would like to clarify that Davy Corporate Finance, in conjunction with KPMG Corporate Finance, were advising Siteserv exclusively. Davy Corporate Finance were not advising the person whose details were also referred to in the question as a bidder for Siteserv. Officials in my Department received correspondence from Davy confirming the same.
Given what I have already outlined, I do not believe there exists a conflict of interest on these matters.
60. Deputy Catherine Murphy asked the Minister for Finance if, as part of his departmental inquiries into the sale of Siteserv by the Irish Bank Resolution Corporation in 2012, he was aware that shares in Siteserv were bought by senior employees at the entity engaged by Siteserv to facilitate its own sale in the three month period immediately preceding the actual sale to Millington Ltd.; if he was aware that these share acquisitions may have arisen as a result of privileged information relating to the sale being shared in a dishonest fashion; if he is aware that the Irish Stock Exchange has investigated this matter; and if he will make a statement on the matter. [16996/15]
View answer61. Deputy Catherine Murphy asked the Minister for Finance if he will release all documentation and correspondence between his Department, other State agencies, the Irish Bank Resolution Corporation and all other parties concerning the acquisition of shares in Siteserv Ltd. in the period 1 June 2011 to date in 2015; and if he will make a statement on the matter. [16997/15]
View answerI propose to take Questions Nos. 60 and 61 together.
The Deputy raises serious concerns regarding potential insider dealing in her question. If the Deputy has any information regarding insider dealing in Siteserv shares, I would suggest that she contact the Irish Stock Exchange in relation to same. The Irish Stock Exchange investigates suspected insider dealing on the Enterprise Stock Market, being the market on which Siteserv shares traded, and reports any such findings to the Office of Director of Corporate Enforcement. The Department of Finance does not have a role in this process.
During the Department of Finance review into the sale of Siteserv, it was not brought to the attention of me or officials in my Department that there may have been questionable share trading activity preceeding the sale of Siteserv or that the Irish Stock Exchange had investigated this matter. Neither I nor officials in my Department monitor the share dealing activity in publicly traded companies, including Siteserv.
Neither I nor officials in my Department hold a record of the list of shareholders who benefitted from the sale of Siteserv in 2012 other than the partial summary of the top 10 shareholders of Siteserv as at December 9, 2011, already released under Freedom of Information.
However, I understand the Special Liquidator is coordinating access to the share register, which is available to view at the offices of Computershare, who provided share registration services to Siteserv. I would suggest that the Deputy contact the Special Liquidator directly if she would like to access this information.
62. Deputy Catherine Murphy asked the Minister for Finance if he is aware of instances where a person (details supplied) met with Siteserv company management at any stage from 1 January 2011 to the date of the eventual sale of Siteserv by the Irish Bank Resolution Corporation, or had direct engagements; if he is aware of instances where this person met with management or staff at the corporation, or had direct engagements, during the same period; if so, if he will share the extent of his knowledge concerning the subject of those meetings and engagements, who participated in them and the dates on which they occurred; and if he will make a statement on the matter. [16998/15]
View answerNeither I nor officials from my Department were made aware of instances where the person referred to in the question met with Siteserv management between 1 January 2011 up to the time of the eventual sale of the company.
63. Deputy Catherine Murphy asked the Minister for Finance if his attention has been drawn to instances where the main shareholders of Siteserv met with a person (details supplied), or had direct engagements with the person, at any stage from 1 January 2011 to the date of the eventual sale of Siteserv by Irish Bank Resolution Corporation; and if he will make a statement on the matter. [16999/15]
View answerMy attention or that of my officials was not brought to instances in which these meetings may have taken place.
64. Deputy Catherine Murphy asked the Minister for Finance if he will account for the reason neither the Financial Services Regulator, the Irish Stock Exchange nor the Irish Takeover Panel initiated any inquiries into the sale of Siteserv by the Irish Bank Resolution Corporation; if he will share the extent of his Department’s correspondence with each of these entities in relation to same; and if he will make a statement on the matter. [17000/15]
View answerNeither I nor my officials from my Department were involved in the transaction involving the company referred to in the question. The Financial Services Regulator, the Irish Stock Exchange and the Irish Takeover Panel are independent in their function. There is no record of correspondence between my Department and these bodies in relation to the sale of Siteserv.
65. Deputy Catherine Murphy asked the Minister for Finance if he is satisfied that all staff employed in his Department do not have financial interests which may conflict with their public service duties; the requirements which are placed upon staff in order to ensure impartiality; if it is permissible for staff who are employed at his Department to comply with these regulations by transferring any potential compromising interests to their spouses or civil partners; if such transfers are required to be disclosed; and if he will make a statement on the matter. [17001/15]
View answerAs in the case for all civil servants, all staff in my Department must adhere to the Civil Service Code of Standards and Behaviour. The code makes it clear that "Civil servants are not allowed to: use their official positions to benefit themselves or others with whom they have personal, family, business or other ties".
It goes on to state that "Civil servants may not at any time engage in, or be connected with, any outside business or activity which would in any way conflict with the interests of their Departments/Offices, or be inconsistent with their official positions, or tend to impair their ability to carry out their duties as civil servants"
In addition, staff at designated levels are required to comply with the provisions of the Ethics in Public Office Acts 1995 and 2001, which requires the return of a completed Statement of Interests form on an annual basis. In my Department all staff at Administrative Officer, Higher Executive Officer level or above have been designated and earlier this year, with the exception of staff who are absent on maternity leave or other long term leave, all designated staff have completed a return for 2014. Staff on secondment to my Department from the NTMA at an equivalent level are also required to complete the same Statement of Interests form on an annual basis and return it to the Compliance Officer in my Department.
These forms require the disclosure of all interests which could materially influence a staff member in or in relation to the performance of their official functions.
A member of staff cannot avoid these disclosure requirements by transferring interests to a spouse or civil partner, as the staff member is required to disclose any such interest "held by you and any interests held, to your actual knowledge, by your spouse or civil partner, a child of yours, or a child of your spouse."
66. Deputy Terence Flanagan asked the Minister for Public Expenditure and Reform his plans to abolish the pensions-related deductions (details supplied); and if he will make a statement on the matter. [16869/15]
View answerI refer to my reply of 15 April 2015 to Parliamentary Question Number 14928. I have now invited the Public Services Committee of ICTU to discussions on an approach to commencing the gradual unwinding of the Financial Emergency Measures in the Public Interest (FEMPI) legislation which provides inter alia for the imposition of a pension related reduction on the remuneration of public servants since March 2009.
67. Deputy Seamus Kirk asked the Minister for Jobs, Enterprise and Innovation his Department's strategy in relation to social enterprise; if he has a strategic plan for this sector; the number of jobs created by social enterprises over the past five years; the net impact of these jobs on the economy; and if he will make a statement on the matter. [16909/15]
View answerThe Programme for Government includes a commitment to develop a vibrant and effective social enterprise sector. A report on the potential of social enterprises to create jobs and to identify the actions required by Government and other relevant bodies and agencies, was commissioned and produced by Forfás in July 2013.
The Forfás report recommended the establishment of an Inter-Departmental Group (IDG) to develop and champion the sector. The group was established in October 2013 and is chaired by Minister of State Sean Sherlock.
The function of this group is to provide a coordinated approach from the Government sector to support the development of social enterprise in Ireland, to develop a policy framework for the provision of these supports and to examine the recommendations of the Forfás report in greater detail with a view to their implementation.
The Group also formally engages with the Social Enterprise and Entrepreneurship Task Force (SEETF), as the best representative group of the sector to progress the recommendations of the Forfás report. Since October 2013, the recommendations being examined by the group cover the areas of Policy Development, Capacity Building, Procurement, Funding and Finance, Developing Leaders, Harnessing Community Support and, Governance.
The Social Enterprise spectrum ranges from enterprises that are fully supported by the State through to a small number of commercially trading companies. Therefore mapping the sector and identifying the supports required is a challenge for policy makers.
My Department has no policy responsibility for the social enterprise sector. This lies with Minister Sean Sherlock who chairs the Inter-Departmental Group on Social Enterprise with secretariat support being provided by the Department of Environment, Community & Local Government. To this end my Department has no specific strategy in relation to social enterprise, however, there are many supports available to all entrepreneurs wishing to start up a business, and those that wish to expand businesses, with a viable commercial element.
Progress so far includes:
Social Inclusion and Community Activation Programme
Support for social enterprises has been included as an element in the new Social Inclusion and Community Activation Programme, under the Department of the Environment, Community and Local Government, effective from 1 April 2015.
Social Innovation Fund
The Department of the Environment, Community and Local Government has supported the establishment of a Social Innovation Fund (starting at €10m – matched 50:50 State/philanthropy) to support the growth of social innovations with the potential for transformative impact on critical social issues facing Ireland, including unemployment and the environment, with funding being provided from the Dormant Accounts Fund.
Local Enterprise Offices
The New Local Enterprise Offices which have been established will act as the first-stop-shop and sign-posting service to any enterprise that is commercially viable and meets the eligibility criteria set down by the Department of Jobs, Enterprise & Innovation.
Capacity Building/E.U. Funds
The group is exploring mechanisms to develop capacity in the sector and examine how best to access EU funds e.g. the new EU Employment and Social Innovation (EaSI) programme has a Microfinance and Social Entrepreneurship axis dedicated to support for access to micro-finance and social entrepreneurship.
Public Procurement
Preliminary research is also being undertaken on the inclusion of social impact clauses in public procurement policy.
Commission for the Economic Development of Rural Areas (CEDRA)
The Commission for the Economic Development of Rural Areas, CEDRA, published its report in 2014. The Report contained 34 recommendations focussed on supporting the medium term economic development of rural areas in the period to 2025. The Department of the Environment, Community and Local Government recently announced a fund of €2 million euro for a pilot Rural Economic Development Zones (REDZ) initiative under CEDRA. In this context and to reinforce the diversity of potential for economic development identified in the report, both in rural areas in general and REDZ areas in particular, the REDZ pilot will be complemented by a Social Enterprise scheme.
68. Deputy Patrick O'Donovan asked the Minister for Jobs, Enterprise and Innovation the reason supermarkets are not required to publish their financial situation in terms of profit or loss on an annual basis; if this is the accepted practice in other European Unon member states; and if he will make a statement on the matter. [16911/15]
View answerThe contents of the financial statements of limited companies are governed by EU Company Law Directives and Regulations and by the applicable accounting standards.
At present, the requirements regarding the preparation and publication of the accounts of limited companies and groups are determined by the First, Fourth and Seventh EU Company Law Directives and by the EU IFRS Regulation. The requirements of the Fourth and Seventh Directives will be replaced by those of the new Accounting Directive (Directive 2013/34/EU) when it is transposed into Irish law.
The present requirements are largely reflected in the Companies Act, 1963, the Companies (Amendment) Act 1986 and the European Communities (Companies: Group Accounts) Regulations 1992, as amended. They are also reflected in Part 6 of the Companies Act 2014, which will replace the existing legislation and which I propose to commence as of 1 June 2015.
The EU Eleventh Company Law Directive, implemented as the European Communities (Branch Disclosures) Regulations, 1993, addresses the requirements applicable to branches of EEA companies.
Irish subsidiaries of EEA companies can submit the audited group accounts of their parent to the Registrar of Companies instead of their own individual accounts provided certain conditions are met. EEA companies that have an Irish branch are required to submit only the company accounts to the Registrar of Companies. Irish companies that are subsidiaries of EEA companies and which are themselves parent companies need not produce consolidated accounts provided certain conditions are met.
There are similar provisions for subsidiaries of non-EEA companies. In such cases the consolidated accounts of the EEA or non-EEA group must be submitted to the Registrar of Companies.
I have no plans to amend this disclosure regime in relation to specific sectors in the economy, as this would be open to accusations of discrimination and, were it to be required generally in the economy, it could have implications in terms of business costs and attracting foreign direct investment.
69. Deputy Pat Deering asked the Minister for Agriculture, Food and the Marine the reason a person (details supplied) in County Kilkenny did not receive an allocation from the milk quota national reserve. [16862/15]
View answerThe named person was an applicant under my Department’s recent Animal Disease Scheme. This scheme involves the allocation of milk quota, from the National Reserve, to milk producers whose supplies have exceeded their quota as a direct result of animal movement restrictions caused by a TB/Brucellosis outbreak.
The closing date for receipt of applications to this scheme was 5 December 2014, except in cases where herds became restricted after that date. In such instances the relevant farmers were required to submit their application within one month of the date of restriction.
I am informed that the named person’s herd was restricted on 31 January 2015 however his application was not received in my Department until 27th March 2015, almost 2 months after the restriction was placed. Consequently his application was not presented to the Tribunal for assessment and the named person was informed accordingly.
70. Deputy Thomas Pringle asked the Minister for Agriculture, Food and the Marine if consideration has been given to the proposal for the development of a recreational bluefin tuna fishery made to him recently, if so, the action he proposes to take; and if he will make a statement on the matter. [16905/15]
View answerI am aware that the interested parties have recently been enquiring about the possible introduction of recreational fishing for Bluefin tuna in Ireland. By way of background let me say that Atlantic bluefin tuna is a highly regulated species with annual catch limits set by the International Commission for the Conservation of Atlantic Tunas (ICCAT) based on scientific advice. A management plan was put in place by ICCAT in 2007 to address the alarming depletion in stock levels. This resulted in greatly reduced annual catch limits in the Mediterranean and Eastern Atlantic Ocean in an effort to rebuild stocks.
Within the EU, quota shares were allocated over ten years ago to Member States based on track record. Ireland, which did not have a track record of fishing for bluefin tuna, does not have a quota. We have access to a small by-catch quota for Bluefin tuna in our pelagic fisheries only. However, this by-catch quota is also available to other Member States, and cannot be used for recreational and/or sport fisheries.
The unequivocal advice we have received from the EU Commission is that a recreational fishery for bluefin tuna is not legally possible in the absence of a national bluefin tuna quota. We do not have such a quota and it is extremely unlikely that we could obtain one as it would involve reducing the share of the Total Allowable Catch of those Member States that do have quota and for whom bluefin is an important commercial fishery. There would be no support from any quarter for any action by Ireland that might lead to an increase in bluefin mortality.
My Department has for some time been exploring if there may be a means of securing support at EU and ICCAT level for the introduction of a tag and release scientific scheme. In that context, we have been in correspondence with the Department of Communications, Energy and Natural Resources (DCENR), which has responsibility for angling, and the EU Commission, with regard to the possibility of a tag and release fishing programme for Bluefin that would not impact mortality and would contribute to scientific knowledge. We have also requested that Department’s views on the specific proposal received from the Irish Big Game Angling Association in this regard.
For there to be any possibility of such a tag and release programme, an agreement would first be required within the EU, and then an attempt could be made to change ICCAT rules that would permit a possible tag and release programme.
However, before any case could be made to the EU Commission, there are a number of legal and technical issues which will require further examination and clarification. For instance, a detailed technical analysis would be required of how such a possible tag and release scheme might work (possible scope of the scheme in terms of seasons and numbers, how fish are handled etc.). It would also be necessary to identify changes that would be required to ICCAT and EU Regulations. My Department will continue to liaise closely with DCENR and relevant stakeholders on this matter to consider who would be in a position to undertake such work, in the first instance.
